MyBusiness magazine recently published an excellent overview of the ATO’s small business tax concessions. To qualify for these concession a business must have an annual turnover less that $2million.
Depreciation: From 1 July 2012 small business can take an immediate deduction for assets up to $6,500.
Trading Stock Rules: Small business only need to report changes to trading stock balances if the amount changes by more than $5,000 from year to year.
Prepaid Expenses: Small business can claim a prepaid expense up front provided the prepayment is not for a period that exceeds 12 months.
GST Concessions: Small business can account for GST on a cash basis, which means you only remit GST for funds received not invoiced. Some small business can pay pre-calculated GST installments to the ATO and reconcile at year end.
PAYG Installments: Small business required to report and pay PAYG tax installment can pay a predetermined PAYG amount based on past returns and worry about reconciling at year end.